Baird has increased its price target for Texas Instruments to $225.00 from $195.00 and retained an Outperform rating on the shares. The new target implies about a 14.4% upside from the stock’s then-current price of $196.63. InvestingPro data identifies Texas Instruments as a significant participant in the Semiconductors & Semiconductor Equipment industry.
The research firm pointed to Texas Instruments’ first-quarter outlook, which it described as "above-seasonal, unit-driven," as a constructive surprise for investors. Baird noted that the company’s revenue exposure tied predominantly to direct customers, together with the absence of long-term supply agreements coming out of the prior down cycle, positions the company to capture demand earlier in a recovery.
In Baird’s view, there is "significant room for upside" when comparing the stock’s current valuation multiple to its five-year peak price-to-earnings ratio, which exceeded 35 times. The firm initially upgraded Texas Instruments on April 7, 2025, and it remains upbeat on this and other cyclical names for 2026, specifically highlighting demand in data center and industrial end markets as key growth drivers.
Market participants have offered a range of views following Texas Instruments’ fourth-quarter 2025 financial report. For the quarter, the company reported earnings per share of $1.27, slightly below the consensus expectation of $1.29. Revenue came in at $4.42 billion, marginally under the anticipated $4.45 billion.
UBS responded to the results by raising its price target for Texas Instruments to $260 while keeping a Buy rating, citing improving revenue trends and constructive commentary on bookings and backlog. Mizuho also adjusted its target higher, to $160, but maintained an Underperform rating. Mizuho observed that revenue for the December quarter was in line with consensus at $4.4 billion and noted guidance for the March quarter at $4.5 billion, slightly above expectations.
Taken together, the recent analyst activity reflects a spectrum of perspectives on Texas Instruments’ near-term trajectory: several firms have raised targets and one major house reiterated caution despite a higher target. Investors and market watchers will be weighing the company’s incremental guidance and booking commentary alongside these divergent analyst views as they assess the stock’s outlook.
Summary
Baird bumped its TXN price target to $225 and kept an Outperform rating, emphasizing a stronger-than-expected Q1 outlook and direct-customer exposure that could favor an early recovery. UBS and Mizuho offered contrasting takes after Q4 results, underscoring mixed analyst sentiment.
Key points
- Baird raised its target to $225 from $195 and maintained an Outperform rating; this implies roughly 14.4% upside from $196.63.
- Baird cited an "above-seasonal, unit-driven" Q1 outlook and the company’s direct customer revenue exposure as reasons it could lead in an early-cycle recovery; it also highlighted data center and industrial demand as growth drivers for 2026.
- Other analyst moves: UBS raised its target to $260 and kept a Buy, noting improving revenue trends and positive bookings/backlog commentary; Mizuho lifted its target to $160 but retained an Underperform rating and flagged in-line December revenue and slightly higher March guidance.
Risks and uncertainties
- Quarterly earnings and revenue came in slightly below consensus ($1.27 EPS vs $1.29 expected; $4.42 billion revenue vs $4.45 billion expected), which may weigh on near-term sentiment in the semiconductors sector.
- Analyst opinions diverge — while some firms have increased targets and ratings, others have raised targets but kept cautious stances, reflecting uncertainty about the sustainability of revenue improvements and bookings trends.
- Guidance variability: March-quarter guidance cited by Mizuho at $4.5 billion was only slightly above expectations, indicating that forward results remain sensitive to demand in end markets such as data centers and industrial customers.